Finally: A PayPal Competitor

A long string of horror stories relating to PayPal are easily found. PayPal users repeatedly have a hard time processing cards, getting money, and keeping the payment giant from freezing bank accounts completely. In the past, companies attempting to take on PayPal have popped up. But, none of these companies have really succeeded. Now, a relatively new company called Braintree has just raised $35 million in funding. The sole purpose for this funding? To banish PayPal once and for all.

Currently, Braintree is the payment solution behind the likes of Rovio, HotelTonight, AirBnB, and various other companies. So far, Braintree has used funding dollars to create a platform that viciously competes with PayPal. From small merchants to larger ones, Braintree will be the new payment platform name to keep an eye on.

Where The $35 Million Went

In order to compete with PayPal effectively, Braintree had to make same day payments happen. Using some of that $35 million, the company now offers users same day payment processing. Braintree also accepts over 130 different currencies. Braintree has told press that the services the company offers has made it possible for some popular startups to expand. Most of Braintree’s revenue comes from mobile payments. Speaking of the company’s revenue, how does Braintree earn money? Roughly the same way that PayPal does.

User Costs

Both PayPal and Braintree take a percentage of each transaction. This percentage is then added to the company’s overall profits. PayPal current deducts, roughly, 30 cents per transaction in addition to 2.9% of the total amount. Braintree deducts the exact same amount. So, you won’t win when it comes to deductions or fees. But, Braintree has also gone with PayPal’s fee structure for a reason. The company wants to provide more services to users for the same rate. How does it stack up?

Braintree Services VS. PayPal Services

Braintree claims that you will receive “most” of your money in two business days. The rest of the money will be in your bank account in four business days. This might be a bit of a deterrent, since PayPal will deposit all of your money in two business days. However, as mentioned, Braintree is using recent funding monies to work on this waiting period. In addition, Braintree will allow users to take all billion data if that user decides to go with a different payment system. Braintree also works in many different countries including the U.S. and Canada.

As mentioned, Braintree is the number one payment platform when it comes to mobile. If you run a startup that relies on mobile, you may want to consider using Braintree (so far, it’s worked out for some of the more successful startups out there). Lastly, Braintree offers a “High Volume Pricing Plan” for companies that will process millions of transactions on an annual basis. PayPal offers two-day payment completion, availability in various countries, and other incentives. Right now, the two payment platforms are very similar, but all of that may change with Braintree’s latest round of funding. To check out Braintree, make sure to visit the company’s main site.